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Is NASDAQ:EXTR suited for CANSLIM investing?

By Mill Chart

Last update: Sep 18, 2023

In this article we will dive into EXTREME NETWORKS INC (NASDAQ:EXTR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed EXTREME NETWORKS INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Looking into the canslim metrics of EXTREME NETWORKS INC

  • EXTREME NETWORKS INC has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 120.0% increase. This indicates improving financial performance and the company's effective management of its operations.
  • EXTREME NETWORKS INC has achieved 30.81% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
  • EXTREME NETWORKS INC has achieved 122.0% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
  • EXTREME NETWORKS INC demonstrates a strong Return on Equity(ROE) of 66.87%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. EXTREME NETWORKS INC shows promising potential for continued success.
  • The Relative Strength (RS) of EXTREME NETWORKS INC has consistently been strong, with a current 95.38 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. EXTREME NETWORKS INC demonstrates promising potential for sustained price momentum.
  • With a Debt-to-Equity ratio at 1.61, EXTREME NETWORKS INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
  • With 82.74% of the total shares held by institutional investors, EXTREME NETWORKS INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 3 out of 10 to EXTR. Although EXTR is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

  • Looking at the yearly performance, EXTR did better than 95% of all other stocks. We also observe that the gains produced by EXTR over the past year are nicely spread over this period.
  • EXTR is part of the Communications Equipment industry. There are 60 other stocks in this industry. EXTR outperforms 96% of them.
  • The short term trend is negative, the long term trend is neutral. Not much exciting going on here.
  • EXTR is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so EXTR is lagging the market slightly.

For an up to date full technical analysis you can check the technical report of EXTR

How does the complete fundamental picture look for NASDAQ:EXTR?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

EXTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Communications Equipment industry. While EXTR has a great profitability rating, there are some minor concerns on its financial health. EXTR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, EXTR could be worth investigating further for growth investing!.

Our latest full fundamental report of EXTR contains the most current fundamental analsysis.

Our CANSLIM screen will find you more ideas suited for growth investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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EXTREME NETWORKS INC

NASDAQ:EXTR (7/12/2024, 7:00:02 PM)

After market: 13.95 +0.17 (+1.23%)

13.78

-0.1 (-0.72%)

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